finAPI GiroCheck helps gets contracts signed
Proving liquidity via account check: Fast, transparent and secure
Munich, July 2021 – With the new finAPI GiroCheck service, the BaFin-licensed account information service finAPI offers consumers the opportunity to prove their solvency via a one-time account insight. The check is simple, secure, and with full control over personal data, and is made when ordering online with the customer’s approval. If the check shows sufficient liquidity, companies can approve the transaction – including expensive items bought in installments or contracts for mobile phones. Consumers who may well have been denied an offer in the past due to an insufficient credit rating benefit, as do companies who can expand their customer base.
Mobile phone contracts, purchases on account or options to pay by installment are often rejected by companies and service providers because a prospective customer’s payment history indicates an increased risk of default. With finAPI GiroCheck customers can have their creditworthiness checked based on their current liquidity, and decide if they want to make the result of the account check available to third parties. finAPI uses the legal framework created by the PSD2 payment services directive to carry out an account analysis and pass on strictly selected, relevant information to third parties for a specific purpose. This service must be ordered by the account holder and is completely voluntary.
With finAPI GiroCheck account data is analyzed once. The procedure only takes into account information that is necessary for this check, such as regular incoming payments or sufficient account coverage. The account holder receives a preliminary assessment of his or her chances of obtaining the desired contract and must then decide whether or not to allow the information to be forwarded to the contract provider. If the results are transmitted, the provider decides whether to make the customer an offer. If the customer does not allow the information to be forwarded, the process is cancelled and there are no consequences.
In November 2020, SCHUFA launched a product test together with finAPI based on the second EU Payment Services Directive, or PSD2. The findings of this test were shared with data and consumer protection experts. Suggestions and proposals from these discussions were incorporated into the development of finAPI GiroCheck. The aim is to use XS2A technology to offer consumers a service that helps them expand their financial possibilities in a simple and secure way and with full control over their own data.
finAPI GmbH is one of the leading providers of intelligent banking APIs in Germany, and is licensed by BaFin as an account information and payment initiation service. The Munich-based company has been developing and implementing sophisticated software solutions for aggregating and analyzing financial data since 2008.
Our focus is on open banking, data intelligence, KYC, payment and PSD2 services. Together with our business partners finAPI develops new and innovative online applications for the financial sector. Our customers are from a wide range of industries such as banks, financial service providers, insurance companies, software providers and many others. Major clients include ING, DKB, sevDesk, Swiss Life, ImmobilienScout24 and Finanzguru.
At the beginning of 2019 SCHUFA Holding AG acquired a majority stake in finAPI. Since then the two companies have been cooperating closely to develop XS2A-based solutions, e.g. for the secure and convenient identification of consumers in online transactions.
Verena van Engen
Senior Marketing & Communications Manager